Landmark Bancorp(US:LARK)2025-07-25 16:00Financial Data and Key Metrics Changes - Net income for the second quarter totaled $4.4 million, an increase from $3 million in the same period last year, reflecting increased net interest income and controlled expenses [4] - Diluted earnings per share rose to $0.75, a 56% increase year-over-year [4] - Return on average assets was 1.11% and return on average equity was 12.25% [4] - Efficiency ratio improved to 62.8% compared to 67.9% in the second quarter of the previous year [12] Business Line Data and Key Metrics Changes - Total gross loans increased by $42.9 million or 16% on an annualized basis, reaching over $1.1 billion [5][13] - Net interest income grew by 4.3% compared to the previous quarter, totaling $13.7 million [8] - Noninterest income totaled $3.6 million, an increase of $268,000 compared to the prior quarter [11] Market Data and Key Metrics Changes - Total deposits decreased by $61.9 million on a linked quarter basis but increased by $23.4 million or 1.9% year-over-year [13] - The average interest rate on interest-bearing deposits decreased by three basis points to 2.14% [10] - The unemployment rate in Kansas remained stable at 3.8% as of June 30 [19] Company Strategy and Development Direction - The company is focused on maintaining solid credit quality and enhancing customer relationships while growing lending and fee businesses across all markets [21] - There are initiatives planned for the second half of the year to gather more deposits through the branch network [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in being adequately provisioned for credit losses, with expectations for nonperforming loans to trend positively in the upcoming quarters [27][28] - The company is optimistic about loan demand and aims to support growth with a high-quality deposit base [34] Other Important Information - The allowance for credit losses was $13.8 million, representing 1.23% of total loans [5][11] - A cash dividend of 21¢ per share was declared, marking the ninety-sixth consecutive quarterly cash dividend since the company's formation [6] Q&A Session Summary Question: Commentary on loan provisions and nonaccruals - Management believes they are adequately provisioned, with the $1 million provision primarily due to loan growth, and expects trends in nonperforming loans to improve [27][28] Question: Insights on deposit decline and Federal Home Loan Bank borrowings - Management noted that the decline in deposits was likely seasonal and emphasized strategies to enhance deposit gathering through their branch network [30][31]